Assessing the True Cost of Homeownership

Heidi Robbins

Aug 31

3 min read

Updated: Oct 5

The mortgage payment is only part of what a home costs. As a military spouse for more than 30 years and an Arlington Associate Broker with 560+ transactions, I've seen families stretch to buy and then get caught off guard by everything else. Here's the full list, plus how to sanity-check online calculators.

This article is general information, not tax, legal or financial advice.

Upfront costs

Down payment: VA loans allow no down payment for eligible buyers, if the price doesn't exceed the appraised value. Other loans usually need some money down.
VA funding fee: It's 2.15% for most first-time VA buyers putting less than 5% down, and it can be financed. Veterans with a service-connected disability rating are exempt. See VA.gov.
Closing costs: lender fees, title, settlement and prepaid taxes and insurance.
Earnest money deposit, inspections and moving costs.

Monthly and yearly costs

Principal and interest.
Property taxes: In Northern Virginia, rates are set per $100 of assessed value. For 2026, Arlington's rate is $1.053, Fairfax County's is $1.12, and Alexandria's is $1.135. On a $750,000 assessment, that's roughly $7,900 to $8,500 a year.
Homeowners insurance, plus flood insurance if needed.
HOA or condo fees.
Utilities, which are often higher in a bigger or older home.
Maintenance and repairs: Plan for routine upkeep every year and bigger replacements over time, like a roof, HVAC or water heater.

Taxes can help, but less than you think

Mortgage interest and property taxes are deductible only if you itemize. With the 2026 standard deduction at $32,200 for married couples filing jointly, many families won't itemize. The cap on state and local tax deductions is about $40,000 for most filers, with a lower limit at higher incomes. A tax pro or MilTax can run your numbers.

How much can you afford?

Lenders set the ceiling, but you set your comfort level. VA's guideline is a 41% debt-to-income ratio, plus residual income: the money left each month after major expenses, which VA checks by family size and region. Qualifying for a payment doesn't mean it fits your life. Build your budget on base pay plus BAH. If your spouse's income might change after the next PCS, test the budget without it.

Are online calculators accurate?

They're useful for ballpark numbers but often leave out taxes, insurance, HOA fees, the funding fee and closing costs. Many also collect your contact information for marketing. Use them to explore, then ask a lender for a Loan Estimate, which shows your real costs. The CFPB's homebuying tools explain each line.

Price per square foot and the biggest house on the block

Price per square foot is a quick way to compare similar homes. It isn't a valuation on its own, because location, condition, lot and layout matter too. The largest or most expensive house in a neighborhood can be harder to appraise and resell, since there are fewer similar sales to support its value. If size matters to you, verify the square footage rather than relying on a listing or online estimate.

In Northern Virginia

High prices and property taxes make the full monthly cost especially important here. I'm happy to help you estimate taxes, HOA fees and typical utility costs for the homes you're considering. My first-time buyer guide and mortgage-ready budget plan are good next reads.

Sources: VA Lender's Handbook, chapter 4; VA.gov, funding fee and closing costs; Arlington County; Fairfax County; City of Alexandria; IRS 2026 inflation adjustments; IRS Schedule A instructions.